A fight is coming in N.J. over pensions, minimum wage, sick leave

Business groups announce their new coalition to fight a series of Democrat-backed proposals in the New Jersey Legislature.

TRENTON -- New Jersey business groups announced Friday they're forming a coalition to launch a campaign against Democratic-backed efforts in the state to raise the minimum wage, mandate paid sick leave and constitutionally require hefty contributions to government worker pensions.

Leaders of the groups said they want to work together to fight these three "ill-advised" and "damaging" proposals, but also to improve New Jersey's broader business climate.

"We have been very patient waiting for the opportunity to be at the table, and I think basically our patience ran out," said Tom Bracken, president of the New Jersey Chamber of Commerce.

In addition to the coalition's members, including the state and several local chambers and the New Jersey Business and Industry Association, Bracken said the group will solicit anonymous donations from individuals through its website.

He declined to predict what kind of war chest he expected the group to amass, saying the not-for-profit organization, Opportunity New Jersey, has "not yet solicited our first dollar."

Bracken said they're pooling their "immense resources and enormous potential" to kill these proposals, which members of the coalition chipped at one at a time.

"These things reared their ugly heads less than a month ago and all of a sudden are destined to be on the ballot," Bracken said. Democrats want to amend the constitution to force the state to make pension contributions and will also seek an amendment boosting the minimum wage if they can't get it done legislatively.

"That kind of excited us because you can't do any of these major issues without proper analysis, without proper vetting, without talking to constituents, without reaching out to the business community," he said.

The pension proposal, spearheaded by state Senate President Stephen Sweeney (D-Gloucester) would constitutionally require the state gradually increase payments into the declining public worker pension system. The state portion of the fund is underfunded by about $40 billion. Business leaders warn that putting the payment plan into the state constitution would create a "super priority" spurring tremendous spending cuts or tax hikes.

Democrats plan to put the proposed amendment to voters this fall.

State Democrats also are pushing a $15 minimum wage, legislatively or by constitutional amendment. Ralph Thomas, executive director of the New Jersey Society of CPAs, said businesses are still adjusting to the 2013 constitutional amendment that raised the minimum wage $1 an hour, with automatic increases based on the Consumer Price Index.

Gas station owners at the Trenton news conference said they'd have to close up shop or raise the price of gas by 9 cents to 16 cents per gallon to keep pace with higher wages. And Joe Olivo, owner of Perfect Communications in Moorestown, said a $15 per hour minimum wage would boost his payroll from 33 percent of revenue to 40 percent or 45 percent.

"The last two years unfortunately have not been strong for my company, and I believe this $15 minimum wage would at best cause me to downsize my company and worst would possibly cause me to close the business that my parents started 37 years ago," he said.

The group's third target is a proposed policy mandating paid sick leave that Bob Prunetti, president of the MidJersey Chamber of Commerce, called an attempt to force one-size-fits-all legislation on the state's diverse businesses.

"All of these mandates put together do not bode well for businesses in the state of New Jersey, more importantly for employees in the state of New Jersey, because ultimately employees and consumers will be the ones that suffer from this type of legislation," he said.